Bitbay Cryptocurrency Exchange
BitBay is a decentralized platform for the sale / purchase of cryptocurrency, goods and services. Participants in the process can directly communicate with each other without resorting to the services of intermediaries such as eBay or Amazon.
The creators of the project claim that they will revolutionize global trade. Transactions on the network are anonymous and secure, including through escrow. In addition, such a solution is perfect for other niche scenarios where trading platforms are not used to serve customers.
The start at BitBay was unsuccessful. The capital raised by the project was dishonestly appropriated by the founders, and the lead developer assumed all responsibility. It seemed that the story of the exchange was over, but the creator did not want to substitute investors, so he continued to work on the project.
As a result of long and painstaking work, the BitBay platform received a second life. The re-launch of the project started in 2015, and since then it has been actively developing.
Reference! The name BitBay is directly related to the projects that are taken as a basis – Bitcoin, eBay.
To ensure a decentralized delivery of goods and competently resolve disputes arising, BitBay uses a double escrow deposit.
On traditional trading floors, disputes are resolved by the administration. Often they take the buyer’s side, and sellers complain about the unfair resolution of the conflict. But the main drawback is that users have to overpay for the overhead associated with resolving disputes.
On the BitBay network, buyers and sellers are interested in a successful transaction solution. First, both parties transfer a certain amount for escrow – a guarantee for the transaction. If the buyer is satisfied with the delivered goods, both parties notify about this, after which they receive their deposit back. If a dispute arises, the security deposit will not be returned until the conflict is resolved.
Such a mechanism encourages both parties to a reasonable resolution of the dispute in order to return funds from escrow. Unscrupulous users in this case can’t make a profit, because they won’t get a deposit. In addition, the reputation system allows you to track trust in a particular user. Participants with a bad reputation or lack thereof pay a large amount of security. Accordingly, users with a good reputation spend less on deposit.
At the same time, the deposit option has additional functionality that the parties can choose depending on their preferences. Sellers, for example, may resort to the “Surety” option. In this case, only the seller pays the deposit, the buyer does not need to transfer funds to the deposit.
A decentralized exchange is an unusual platform where blockchain participants can conduct free trade, not limited to the rules of the platform. Unlike centralized resources, there is complete freedom of action, there are no restrictions laid down by the creators of the platform.
On centralized exchanges, participants use classic payment systems, so they pay a higher percentage. In addition, they are required to provide personal information, which eventually becomes available to third parties. If there are problems with the central server of the traditional exchange, access to it will be blocked until the causes of the failure are eliminated. These systems do not provide maximum protection against hacking and are not responsible to users.
There are a number of differences between the decentralized BitBay exchange and similar sites. The rules of the transaction are prescribed in smart contracts separately for each agreement, while they do not depend on the internal atmosphere of the site. The only condition is that all goods must be legalized.
Another feature of BitBay is that user confidential information is stored in encrypted form. It cannot be accessed without the individual permission of the participant. To register on BitBay, you do not even need an email, although you can use it if you wish. To ensure complete anonymity, the system uses Bitmessage as an email address.
Using his unique software code and his own algorithm, David Zimbek, a specialist in contactless smart contacts, introduced interesting and unique functions into BitBay:
- The most secure wallet;
- Anonymous domestic markets;
- Mechanism of unbreakable contracts, which means invulnerable contracts;
- Decentralized voting.
The unbreakable contracts mechanism is applied if one of the parties does not fulfill the terms of the agreement. I already spoke about the rules of collateral above. These are basic features that you won’t surprise anyone today. But in BitBay there are additional settings, similar to the “Surety” function. Interestingly, you can come up with your own version of the contract, provided that you have knowledge of the Python programming language. Its creation must be agreed with the development team, after sending the contract for consideration. If the creators of the platform find it useful, it will be implemented in the system for general use.
The “Internal Anonymous Markets” menu allows you to convert BAY cryptocurrency into other digital assets or fiat. With their help, you can buy, sell or exchange goods, look for vacancies or candidates, etc. There are no restrictions.
The only requirement of the system is that all products must be legal. In all other respects, users are given complete freedom of action. All customer information is protected by the blockchain, its confidentiality is not in doubt. Even an email address does not have to be entered during registration; instead, the Bitmessage system is used.
BitBay developers can be proud of an advanced security system. Users are protected in all directions. In addition to smart contracts, reliable solutions include the following solutions:
- Maximum protection of an electronic wallet for which 2 keys are created. At the conclusion of the agreement, the transaction is performed with two-factor authentication. The whole process is automated.
- An internal virtual keyboard protects against keyloggers. Thus, the network is protected from malware that intercepts mouse movements.
- A shorthand way to protect keys when encoding is in the form of an image. To get started, you first need to decode the picture. Malicious software can not cope with this task, because to select an image, you need to sort through all the images available on your PC and decode each.
- All messages in the account are encoded. Important correspondence with business partners is encrypted like Bitmessage. Before decryption, it is impossible to even find out what data is there. This greatly complicates the task for crackers.
There are also ways to integrate Tor and other proxies that maximize the anonymity of customer relations with the market.
BitBay cryptocurrency exchange supports not only digital assets, but also fiat. Along with the dollar and the euro, the site added support for the national currency – the Polish zloty (PLN).
Among cryptocurrencies, the most liquid ones are supported, for example, BTC, ETH, LTC, as well as the less well-known ones – GAME, XIN, etc. Deposit and withdrawal is possible in all supported currencies.
When the user selects the direction of trade, he is shown a graph of the depth of prices. A little lower is a glass of prices with buy and sell orders. Functionality reveals all the possibilities even for inexperienced users.
There are many chips for professional traders. The exchange provides special charts, it is possible to integrate the platform with other applications, such as Simple Bitcoin or Bitcoin Ticker. This allows for technical analysis and with high probability to predict further course dynamics.
You can make a deposit in cryptocurrency by transferring to the wallet address, or in fiat using a bank transfer. You can top up your PLN account through Polish mail – PLN Express. But in this case, you will have to pay 2% commission. Other recharge methods are free.
Withdrawal from the exchange is subject to a fixed rate. For Bitcoin – 0.00045 BTC, for ETH – 0.00126 ETH. Fiat is withdrawn by bank transfers: dollars using SWIFT, euros via SEPA, Polish zloty can be withdrawn by bank transfer or cash out at an ATM. Cryptocurrency withdrawals have lower limits, for example, 0.1 XRP or 0.001 BTC.
Commissions for withdrawal of fiat:
SWIFT – 1.35 $ + 0.35% of the transfer amount.
SEPA – 1.5 euros.
Domestic bank transfer – 4 PLN.
The trading commission is floating. It is divided into 2 sides: creating and receiving. The size of the commission depends on the trading volume of the trader. Novice users pay 0.3% for opening an order, 0.43% for execution. If the monthly trading turnover exceeds 875 thousand euros, the commission for makers will be 0.17%, for takers – 0.25%.
A feature of the BitBay exchange is the presence of a special card that allows you to pay with cryptocurrency in offline stores. Issuing a card costs 20 PNL, annual maintenance costs 120 PNL.
Team and Conflicts
The BitBay team initially planned to appropriate the money of investors. There was no talk of further development of the project. To ensure legitimacy, the scammers invited David Zimbek as a technical manager.
When, after the ICO, they disappeared along with money, David was left alone against angry investors. It was easiest to resign at that moment, but the developer did not. Over the next three years, he independently worked on the project, he did not have funds to attract other employees. Sometimes he was helped by volunteer developers.
David gave an interview to one publication, where he spoke about a strong emotional shock at the time the founders of BitBay disappeared. For a long time he could not gather strength, but nevertheless pulled himself together and continued to work. Now he is determined to further develop BitBay.
Internal cryptocurrency is used to develop the platform and guarantees the security of transactions. The first coins were issued during the ICO, after which the money was assigned by part of the team. The BAY course immediately collapsed, everyone predicted the collapse of the project.
After the lead programmer continued working on BitBay, no one believed in the success of the platform, so the cryptocurrency rate continued to be at the bottom. The first positive news about the development of the project began to appear only in 2017, which provoked an increase in the cost of BAY.
Today, BAY tokens are trading at $ 0.0062. Over the past month, the price has fallen by 27%. According to CoinMarketCap, BitBay has a market capitalization of $ 6.4 million and a daily trading volume of $ 7.5 thousand. Cryptocurrency is at 398 positions in the ranking.
Developers use BAY cryptocurrency as a means of earning to optimize the platform. The use of cryptocurrency has a number of points, the developers offer special application methods, which consist of:
- Freezing coins to fix the course.
- The verification algorithm of electronic documentation, which confirms the fact of ownership. The protocol is called Notary and Burn.
- Dead Man’s Switch algorithm, which works in a specific situation without human intervention. After the conclusion of the agreement, the coins are assigned to the contract and returned to the owner after all the conditions are met. There is also a more advanced version of the system through which you can choose the encryption method.
BAY owners can participate in a decentralized vote. Moreover, the number of tokens in the account does not affect the number of votes. The mechanism was introduced to maintain the system and maintain decentralization. Based on this function, the Dynamic Peg service works, which is designed to regulate the cost of BAY. Using the service, the developers plan to cope with volatility.
The essence of Dynamic Peg is that in the event of a sharp jump in the rate among the holders of BAY tokens, voting is launched. They determine the number of coins to be frozen. Such a mechanism avoids further destabilization of the market. At the same time, users can choose the number of tokens on their own, or grant this right to the system. In the second case, the corresponding algorithm will be built into the BitBay core.
The decentralized voting process is intended not only to stabilize the exchange rate of coins. Each user can use it to create a selective vote. To do this, specify the required information: topic, subject, number of votes, etc. The subject of voting can be any. You can ask whether you need to put up for sale a particular product, or ask users what deals need to be paid more attention. You can even vote to predict the rate of cryptocurrencies, etc. But this function is available only to holders of BAY tokens.
Officially, the company BitBay is registered in Poland, the city of Katowice, therefore, is fully subject to the laws of this country. The exchange is obligated to store and process personal information of users, providing the maximum degree of protection. To ensure all security points, special programs are used to collect information (cookies and others).
The BitBay security system consists of unique mechanisms: a multi-currency electronic wallet protected by two keys, smart contracts, etc. Cryptocurrency is stored without connecting to the server, which greatly reduces the likelihood of third-party interference via the Network. The security of working with fiat is controlled by partner banks.
They use key encodings in the image format (shorthand method) and protection from keyloggers. Messages that are in the account are also encrypted.
Backups are carried out according to the type “from disk to disk to the cloud”. To increase security, the exchange uses an SSL certificate, which guarantees two-factor authentication using a mobile application, as well as the safety of the transmitted data.
Advantages and disadvantages of the project
Advantages of the BitBay cryptocurrency exchange:
- The presence of a demo account. Users who are not professional traders can practice the evaluation version of the exchange without risking real money. The demo account presents the simplest charts that allow you to analyze the price fluctuations of an asset. Professionals can integrate third-party services and use indicators for technical analysis.
- Support for fiat and the most popular cryptocurrency market. But the main feature is that the exchange supports the Polish zloty. This is the first decentralized exchange to support this coin.
- Having your own card to pay for goods and services, including in offline stores that provide this opportunity. In addition, Polish zloty can be cashed at ATMs.
- High degree of protection. Innovative encryption technologies, cold wallet system, multi-signature – all this ensures high security of accounts. Cold wallets store all user funds. At least 2 participants need to confirm the transaction.
But there are also disadvantages that can negatively affect the further development of the exchange, in particular:
- Increased trade commissions, which in some cases reach 0.43%. This is more than the market average. Even with maximum discounts, there are more commissions than on most cryptocurrency exchanges. At the same time, getting bonuses is not easy, the amount for obtaining a discount is unattainable for most users.
- Lack of popular input and output methods. Work with fiat is possible only through banks, electronic payment systems are not supported. This not only delays translations, but also eliminates the anonymity, which the creators so loudly declare.
- The lack of many popular and ‘exotic’ tokens. It is impossible to see coins that have just entered the circulation. Professional traders believe that the range of trading pairs on the exchange is scarce and is more suitable for beginners.
Prospects for the BitBay Project
Many investors and traders evaluate the BitBay exchange as an interesting project worthy of attention. The increased degree of protection against fraudulent hacking provides massive demand for the resource. The user reputation system, invulnerable contracts, decentralized voting and many other chips distinguish the platform from many cryptocurrency and decentralized exchanges. While competitors use smart contracts of the Ethereum platform, BitBay offers its own development, which deserves special attention.
With regard to future prospects, everything will depend on the developers, the overall market trend and related factors. At present, the security of the project speaks in favor of a positive forecast, thanks to which the user base is regularly growing. Despite the privileges for Polish customers, the authors of BitBay are aimed at a wide audience. The developers worked hard for this, in particular, developed convenient settings for smart contracts, automated a number of important processes, implemented fiat support, etc. Everyone who watched the platform for the past 3 years saw active platform optimization and the implementation of important updates. Big problems at the start became an incentive for increasing speed. The exchange has many unique functions that are not in such cryptocurrency platforms.
There are also negative factors that can slow down the development of BitBay. At the very beginning, the reputation of the project was pretty bad, despite the efforts and decency of David Zimbek, a dark spot remained on the exchange. The second problem that experts state is the weak popularity of the project. Developers pay little attention to the marketing campaign, perhaps this is due to a lack of funds. But you need to take active steps so that as many users as possible learn about the project. Moreover, the exchange has strong technical data, it should be evaluated in the world.
In full force BitBay began to work about six months ago. But some investors are still afraid to invest heavily in the project.
At the moment, long-term investment in BAY cryptocurrency is associated with certain risks, because the exchange rate of coins continues a downtrend. If the cryptocurrency market continues to come out of the global depression, and the project developers strengthen the marketing campaign, in the future we can get a stable and competitive exchange. Today, BitBay is more aimed at the Polish audience.
At the moment, I advise you to consider BitBay as a reliable trading platform for direct interaction using smart contracts, and internal cryptocurrency as a tool for working with the platform